How to save up 25% down for multi family

[Steven May]

I am a 23 year old REI in KC, MO. Currently I am house hacking a SFH. I used a conventional 3% down and financed 97% of the purchase. I am looking to build my rental portfolio and would love to obtain a duplex-quadplex. The most ideal route currently would be to use a 5% down FHA to house hack a duplex with my girlfriend while continuing to rent my SFH. A solid duplex that my girlfriend is willing to live in is becoming hard to find so we may just buy a cheap SFH and make the payment ourselves to live in.

Despite the current situation, my lender and bank I work with is great but I know in order to buy a small multi family property I need 25% down and be able to show some reserves in the bank as well. I’m a full time nurse and make decent money, about 23$/hr after taxes. I am frugal and save almost everything but wondering how people scale up while needing 25% down? It would take quite a bit of time to fund 25% down and like most people I want to obtain properties now! Haha.

If you have experience putting 25% down, are you saving money up in the account and just being patient for the right deal. Are you investing money in the stock market while waiting? I do not have enough equity to pull a line of credit currently but would like to utilize this strategy in the future. Let me know, thanks!